Provisional Contract Of Employment Template for New Zealand

A Provisional Contract of Employment is a specialized employment agreement that establishes a temporary working relationship between an employer and employee in New Zealand. This document incorporates a trial period provision, typically lasting 90 days, during which either party can terminate the employment with minimal notice requirements. The contract ensures compliance with New Zealand employment legislation while providing flexibility for both parties to assess the employment relationship's viability.

When do you need this document?

You'll need a Provisional Contract of Employment when hiring new staff members and want to include a trial period to evaluate their suitability for the role. This is particularly valuable when recruiting for positions where performance assessment requires time, such as specialized technical roles or customer-facing positions. Small businesses often use these contracts when hiring their first employees or expanding their workforce, as it provides security while testing the employment relationship. The document is also essential when hiring for roles where cultural fit and team integration are critical factors that can only be properly assessed over time.

Key legal considerations

The trial period clause must comply strictly with the Employment Relations Act 2000, which requires that trial periods only apply to genuinely new employees who haven't previously worked for the employer. You must clearly specify the trial period duration, termination notice requirements, and the circumstances under which termination can occur. The contract must include all mandatory employment terms such as job description, working hours, remuneration, leave entitlements, and workplace policies. Ensure the agreement includes good faith obligations, which require both parties to act honestly and openly throughout the employment relationship. Health and safety obligations under the Health and Safety at Work Act 2015 must be clearly outlined, including the employer's duty to provide a safe workplace and the employee's responsibility to follow safety procedures.

Legal requirements in New Zealand

New Zealand law mandates that all employment agreements must be in writing and include specific minimum terms under the Employment Relations Act 2000. The contract must specify wages that meet or exceed minimum wage requirements, holiday entitlements under the Holidays Act 2003, and provisions for sick leave and bereavement leave. Privacy obligations under the Privacy Act 2020 must be addressed, particularly regarding personal information collection and use during employment. The agreement must comply with anti-discrimination provisions in the Human Rights Act 1993, ensuring fair treatment regardless of protected characteristics. For the trial period to be legally enforceable, it must be clearly stated in the written agreement before employment commences, and cannot exceed 90 days for most employees or six months for roles requiring specific skills or experience.